Tag Archives: application misrepresentation

D&O Insurance: Warranty Exclusion Precludes Coverage Due to Application Misrepresentation

A federal district court has held that because of an insured company’s application misrepresentation about possible M&A activity, a D&O insurance policy’s Warranty Exclusion precludes coverage for the policyholder’s costs incurred in defending claims arising out of the insured company’s acquisition. The court’s opinion raises interesting questions about how the meaning of application questions is … Continue Reading

Fidelity Bond Rescission Denied Where Application Signatory Was Embezzling Credit Union’s Funds

Material misrepresentations in an insurance application can serve as the basis for rescission of the resulting policy. A recent federal district court decision examined the question of whether or not an insurer could rescind a fidelity bond on the grounds that the credit union manager who signed the credit union’s insurance application failed to disclose … Continue Reading
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